Global Markets Brace for Turbulence as Oil Rebounds and Gold Holds Near $3,950

Brent crude rose 1.6% to 106.61 dollars per barrel on Tuesday, November 3, 2026. US West Texas Intermediate (WTI) crude also gained 1.60 dollars, trading at around 98.06 dollars per barrel.

The rebound followed a sharp sell-off on Monday, when both benchmarks plunged more than 7%. Brent settled at 104.77 dollars per barrel, while WTI fell to 96.46 dollars.

The main driver behind Tuesday's recovery was diminishing optimism over the prospect of a swift agreement between Iran and the United States. Reports of a US attack on Iran's Qeshm Island, alongside Iranian officials' statements highlighting the wide gap between the two sides' positions, renewed concerns about a wider conflict and potential disruptions to oil tanker traffic through the Strait of Hormuz.

However, continued diplomatic efforts by Iran and Qatar to end the war have so far limited the scale of oil price gains.

Spot gold climbed 2.1% on Monday to 3,957.19 dollars per ounce. US gold futures for December delivery also advanced 1.77% to 3,967.40 dollars per ounce. Early trading reports on Tuesday indicated that gold was holding around the 3,950-dollar level.

The recovery came after Monday's decline in oil prices, which eased some concerns about energy-driven inflation. Nevertheless, expectations surrounding the Federal Reserve's monetary policy continue to pose a significant obstacle to a sustained rally in gold.

Traders currently see a roughly 77% probability of a 25-basis-point US interest rate hike in December, down from 80% a week earlier.

Meanwhile, the US midterm elections could influence expectations for fiscal policy, the federal budget deficit, and the country's debt outlook, adding another layer of uncertainty to gold trading.

Silver also recovered on Monday, gaining 3.7% to reach 50.91 dollars per ounce. The metal had fallen below the 50-dollar threshold in the previous trading session for the first time in approximately 11 months.

In early trading on Tuesday, silver was reported at around 50.77 dollars per ounce, indicating that the metal was struggling to establish a stronger upward trend following its recent losses.

Copper futures on the COMEX exchange fell 2.22% on Tuesday to 6.3985 dollars per pound. The metal had also come under pressure on Monday amid weakening demand for industrial assets, trading at around 6.5435 dollars per pound.

On the London Metal Exchange (LME), the latest official spot copper prices stood at approximately 14,375–14,380 dollars per metric ton.

Concerns over weakening industrial demand, declining technology stocks, and uncertainty surrounding the global economic outlook have weighed on copper prices.

US equity markets ended Monday's session with mixed performances across major indexes.

The Dow Jones Industrial Average rose 0.41% to 51,983.98. In contrast, the S&P 500 declined 0.51% to 7,541.40, while the Nasdaq Composite fell 1.07% to 25,164.32.

The Nasdaq's decline came as concerns intensified over technology company valuations and the substantial capital expenditure required to develop artificial intelligence infrastructure. Financial results and weaker-than-expected outlooks from some major technology companies, including Apple, have added to investor concerns.

Asian markets also experienced significant losses. South Korea's benchmark index and Taiwan's stock market each dropped approximately 3.6%.

In Europe, the Stoxx Europe 600 fell around 0.6% to 645.8 points. Major indexes in Germany, Spain, and Italy also declined approximately 0.9% in early trading. The European technology sector recorded a sharper loss of around 2%, highlighting how concerns surrounding the AI sector are spreading across global markets.

The US midterm elections have also emerged as a major factor shaping market expectations. According to prediction market data, Democrats have approximately a 77% probability of winning control of both chambers of Congress.

Such an outcome could pave the way for stricter oversight of technology companies and potential changes to US tax and economic policies.

The US dollar index traded at approximately 101.74 on Tuesday.

The index has faced downward pressure following the decline in oil prices and US Treasury yields. However, concerns over escalating tensions between Iran and the United States have helped limit further losses in the dollar.

In the foreign exchange market, the euro was valued at approximately 1.1192 dollars.

Investors are closely monitoring the US election results, as well as upcoming eurozone inflation estimates and future policy decisions by the European Central Bank (ECB).

The yield on the US 10-year Treasury note recently slipped below 4.88%, reaching its lowest level since September 10. The decline followed falling oil prices and easing inflation concerns.

The yield on the two-year Treasury stood at approximately 4.60%, while the 10-year yield was last reported around 4.91%. The difference between the figures reflects the timing of market data and fluctuations during the trading session.

Lower Treasury yields can reduce the appeal of the US dollar and, if sustained, provide support for gold prices.

However, another increase in oil prices following military developments around the Strait of Hormuz could revive inflation expectations and alter the trajectory of Treasury yields.